Major Works
This section outlines Major Works and Consultation.
Major Works
What are Major Works?
Under the terms of the lease, the landlord is responsible for the maintenance of the building and estate where your leasehold property is situated. East Durham Homes carries out this obligation on behalf of District of Easington Council.
Maintenance can be in the form of small scale repairs such as renewing a roof tile or replacing a commmunal front door, but can also include larger repairs and improvements such as fitting a new roof or windows. Large scale repairs and improvements are known as major works.
What do Major Works Cover?
East Durham Homes will carry out any necessary repairs to your block and estate. (Block means the building that your property forms part of)
Works to your block might include:
Roofing
Window frames but not glass
Refuse bin areas
External walls
Rainwater gutters and pipes
Communal doors and entry phones
Communal boilers
Decoration of external and internal communal parts
Major works to your estate might include:
Landscaping
Boundry fences and gates
Refuse bin areas
Play areas
(Estate is the building, out buildings, grounds, gardens, neighbouring buildings and land that are managed as one unit.)
What is not covered?
Major works do not cover any work to the inside of your home.
As a leaseholder you are responsible for maintaining the inside of your property yourself.
Consultation
What is Leaseholder Consultation?
A proportion of the cost of large scale works is rechargeable to you as a service charge under the terms of the lease. As the costs associated with major works can be significant, the law requires us to carry out formal consultation with leaseholders in particular circumstances.
If the individual cost to you is likely to be less than £250, we do not have to formally consult regarding the works.
If your flat is in a block of four with two flats upstairs and two flats downstairs, we will be able to carry out works up to the value of £1,000 (4 x £250) without formal consultation. If the estimate for the work is more than £1,000 we will carry out formal statutory consultation.
This is your legal right and is called 'Section 20 Consultation'
There is a three stage consultation process:
Stage One
Landlords should consult with leaseholders where they plan to carry out works that would cost individual leaseholders more than £250.
Landlords are required to provide a notice of the proposed works to a Tenants and Residents Group if one exists in the area, and to all leaseholders involved. The notice must:
Describe the works to be carried out
Advise leaseholders where and when they can inspect the documents describing the proposed works
Advise leaseholders they have 30 days to make observations on the proposed works
Show the name and address of the person to send these observations to
Invite leaseholders to nominate a contractor
If the leaseholders nominate a contractor, East Durham Homes must ask the contractor who received the most nominations to provide an estimate for the works.
Leaseholders are not permitted to nominate a contractor if the works are to be advertised in the Official Journal of the European Union.
Stage Two
East Durham Homes is required to provide leaseholders with at least two estimates for the works, one of which must be from a contractor wholly unconnected with East Durham Homes.
Where a nominated contractor provides an estimate, this must be included as one of the estimates.
East Durham Homes must give the estimate to the Tenant and Residents Group if one exists in the area and to all leaseholders involved. Alternatively, they can be told where the estimates can be viewed.
The second stage Section 20 notice must contain:
A summary of the work to be carried out
Information on the estimate received
An invitation to leaseholders to comment on the works and the estimates
The name and address of the person to whom the observations should be sent to
The date when these observations must be received, which must be at least 30 days from the date the notice is served
A copy of the estimates received or information on where the estimates may be viewed
Details of observations received following the Stage One consultation, including East Durham Homes response
Stage Three
Once East Durham Homes has formally awarded the contract, they must write to the Tenants and Residents group and all of the leaseholders concerned informing them of the name and address of the successful contractor, and the reasons for the decision. This is not necessary in cases where the contract has been awarded to a nominated contractor or the contractor who supplied the lowest estimate. East Durham Homes must also provide details of all the observations received and the response to them.
When will I receive a bill for the works?
In accordance with Section 20, East Durham Homes must advise you each year of your liability for any major works that have been carried out.
Estimated invoices for major works will be issued within 4 weeks of works commencing. Once the works are completed, we will calculate the actual cost and issue you with an overall price. We will do this within three months of the completion of the work.
Do East Durham Homes offer any payment options?
Housing Service Charge Loan Regulations 1992
These regulations give leaseholders the right to apply for a Service Charge Loan. If your share of the cost of the works is more than £500, you may exercise your right to a loan once you have received your invoice.
You must make a written application to the Leasehold and Service Charge Officer no later than six weeks after receiving your invoice.Help from the Department of Works and Pension
If you receive a low income or are on income support, the Department of Works and Pensions may help you with bills for major works. You can contact them on 0207 712 2171 or 0845 608 8637.
If you are on a pension and claiming pension credit please call 0800 99 1234.
Consultation on Long Term Contracts
What are long term contracts?
East Durham Homes enter into these contracts to provide a service that will last more than 12 months.
If leaseholders are required to pay more than £100 a year for their share of a service carried out under a long term contract, we must comply with the consultation regulations contained in Section 151 of the Commonhold and Leasehold Reform Act 2002.
The consultation procedure for long term contracts is very similar to the procedure for major works and is divided into three stages.
During the first stage, East Durham Homes must write to all leaseholders advising them of the service to be provided. Leaseholders are then given 30 days to comment on this and nominate a contractor.
Leaseholders are not permitted to nominate a contractor if the works are to be advertised in the Official Journal of the European Union.
Once estimates are received, East Durham Homes must send the leaseholders a second notice providing details of the works and a cost estimated. Leaseholders are given another 30 days to comment.
Finally, East Durham Homes must write to all the leaseholders to advise them who the contract has been awarded to and the reasons for the choice. This is not necessary in cases where the contract has been awarded to a nominated contractor or the contractor who supplied the lowest estimate. East Durham Homes must also provide details of all the comments received and the response to them.
Charges for long term contracts are usually included in the annual service charge bill.